Honestbee granted 4-month debt moratorium by Singapore court
SINGAPORE — Troubled grocery start-up honestbee has been granted a four-month debt moratorium by the Singapore High Court, two months short of the six months it had sought.
The company applied for a six-month debt moratorium on 1 August, and was given a 30-day interim extension on 27 August.
Honestbee has until 31 January 2020 to work on a long-term strategy and restructuring plan, according to a statement late Monday (30 September.) The company said it will focus on its grocery business in Singapore, and relaunch its retail store habitat by honestbee, and also plans to restore its regional businesses through partnerships and joint ventures.
A successful recapitalisation and restructuring of the business will set a strong path of recovery for the company, said Lay Ann Ong, who was appointed the company’s chief executive officer in July.
“This is necessary to ensure that we have the right structure in place moving forward, so that we can better serve our customers across Asia. We would not be able to get here without the support of our creditors, and the efforts put in by our legal and financial advisors,” Ong said.
Honestbee said it will be providing all stakeholders with details of a suitable scheme of arrangement shortly.
The company is in the process of paying its former employees in five instalments salaries owed to them, with the first payment executed on 30 September, a company spokesperson told Yahoo Finance. About 217 workers are owed almost S$1 mlliion in unpaid wages.
Honestbee confirmed that Brian Koo officially resigned as chairman and stepped down from the board on 12 September “so as not impact the decision of the court,” the spokesperson said. Koo remains an investor and creditor of honestbee.
Two days before he resigned Koo invested a further S$895,000 in the company. Koo served as interim CEO after co-founder Joel Sng stepped down in May 2019.
Launched in 2015, Honestbee was co-founded by Joel Sng, Jonathan Low and Isaac Tay. They have since left the company.
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